As of April 25, 6 of the 9 A-share listed tire companies have disclosed their 2024 annual reports.
In terms of revenue, Shandong Linglong Tire Co., Ltd. ranked first with an operating income of 22.058 billion yuan; in terms of net profit, Qingdao Senqilin Tire Co., Ltd. ranked first in the industry with a net profit attributable to its parent company of 2.186 billion yuan.
Yuan Shuai, executive vice president of the China Urban Development Institute’s Agricultural, Cultural and Tourism Industry Revitalization Research Institute, said that China’s tire industry is in a period of new energy technology iteration, deepening green transformation and escalating global competition. Leading companies need to use systematic innovation to build a trinity of ‘technology-market-supply chain’ competitive advantages.
According to data released by the National Bureau of Statistics, China’s rubber tire casing production has achieved significant growth in 2024, with total annual production exceeding the 1.1 billion mark, and the year-on-year growth rate is close to double digits.
The semi-steel tire and all-steel tire markets are somewhat differentiated.
Judging from monitoring data, since 2024, semi-steel tires have generally maintained high production and high sales, while the all-steel tire market has ‘opened high and gone low’, still facing challenges such as market oversupply and weak demand.
Guo Juan, tire industry analyst at Zhuochuang Information, revealed that in the first quarter of this year, semi-steel tires continued to be booming, while the production and sales of all-steel tires showed steady growth.
With policy support, the automobile market has achieved new breakthroughs, especially new energy vehicles.
According to data from the China Association of Automobile Manufacturers, the production and sales of new energy vehicles will exceed 10 million units for the first time in 2024, and the penetration rate has reached 40.9%.
Relevant people from Linglong Tire said that in recent years, innovations have continued to emerge, such as the release of the first smart power-generating tire. The company is at the forefront of the industry in products with low rolling resistance, high wear resistance, and super controllability.
In addition, the company has also built the world’s first 100-ton green water-based dandelion rubber production line to accelerate the development of green and low-carbon products.
In Yuan Shuai’s view, green material substitution and intelligent manufacturing upgrades are the keys to the tire industry’s “dual carbon” transformation.
The person in charge of Linglong Tire also said that green environmental protection has become a new standard in the tire industry, and tire companies need to accelerate innovation and deepen green transformation to achieve green, low-carbon and high-quality development.
Currently, Chinese tires are accelerating their ‘going overseas’ and are expected to further increase their brand power and market share.
The first phase of Linglong Tire’s Serbia base project successfully achieved mass production in September 2024. The factory is also the first factory built by a Chinese tire company in Europe.
In 2024, Sentury will make every effort to promote the construction of the “Sen Kylin (Morocco) annual production of 12 million high-performance car and light truck radial tires project”. The project will be put into large-scale production this year.
However, while “going overseas” is accelerating, Chinese tire companies are also facing challenges such as trade barriers and restrictions.
In this regard, relevant people from Linglong Tire said that Chinese tire companies are accelerating to improve their overseas layout, striving to avoid trade barriers through localized production, and relying on the convenience of nearby supply and services to enhance global competitiveness.
